The local enterprise did not return the loan taken from the bank. It is noteworthy that the pledge for it was 26 land plots owned by the municipality.

Based on the materials of the Prosecutor's Office for the city of Baksan, the Kabardino-Balkaria initiated a case over fraud and deliberate bankruptcy of local company Yug-Agro LLC. Regional Prosecutor's Office reports this.

Law enforcers found that the company leased 26 land plots for seven years from the administration of the Zolsky district of the republic in 2011. Later, the contracts were reissued due to the change in the lease term - it increased to 49 years.

In 2013, Vnesheconombank granted an approved credit for 3.7 billion rubles ($59.4m), with a pledge for the abovementioned land plots in municipal ownership.

The company planned to build a poultry farm for credit. The municipal enterprise Psynadakha OJSC, as the largest producer of concentrated fodder for agricultural poultry, was interested in the project.

For the implementation of the project in the period from April 1, 2014, to January 14, 2015, Vnesheconombank transferred about 1.1 billion rubles ($17.6m) in four tranches. However, the project was not implemented, and the funds of the state corporation expended in the Zolsky district have not been returned to the present time.

"The inactivity of the founder and CEO of Yug-Agro LLC resulted in the actual inability to fulfill credit and other obligations, due to which Vnesheconombank was forced to file with the Arbitrazh Court to declare the enterprise bankrupt," the Prosecutor's Office said.

By a court decision, the company was declared bankrupt. The Prosecutor's Office believes that official and affiliated persons stole the allocated 1.1 billion rubles, which contributed to the deliberate bankruptcy of Yug-Agro LLC.

The inspection materials were forwarded to the Investigative Committee, where the case was initiated under part 4 of Art. 159.1 of the Criminal Code of the Russian Federation (Swindling in the loan sphere on an especially large scale) and Art. 196 of the Criminal Code (Deliberate Bankruptcy).